FAC Explorer

Audit 323194

FY End
2023-12-31
Total Expended
$18.40M
Findings
2
Programs
10
Organization: Fargo Housing and Redevelopment Authority (ND)
Year: 2023 Accepted: 2024-09-30
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500425 2023-004 Significant Deficiency - E
1076867 2023-004 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $4.08M Yes 0
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $2.00M Yes 0
14.879 Mainstream Vouchers $880,187 Yes 0
14.850 Public Housing Operating Fund $746,257 Yes 1
14.871 Section 8 Housing Choice Vouchers $374,221 Yes 0
14.267 Continuum of Care Program $281,276 - 0
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $175,543 - 0
14.896 Family Self-Sufficiency Program $125,218 - 0
14.195 Project-Based Rental Assistance (pbra) $104,768 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $74,555 - 0

Contacts

Name Title Type
CJVNKBFJUCJ8 Tom Keller Auditee
7014782565 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis cost rate. The accompanying Schedule includes the federal award activity of Fargo Housing and Redevelopment Authority under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.

Finding Details

Finding 2023-004
Federal Program U.S. Department of Housing and Urban Development AL #14.850 – Significant Deficiency Federal Award Year 2023 Criteria The PHA must determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5, Subpart F (24 CFR sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259). Condition We tested compliance with the Authority’s eligibility in 40 tenant files and found that 3 TTP’s were incorrect due to the Authority calculating an incorrect rent payment. Questioned Costs None Context We reviewed a sample of 40 of the Authority’s 174 outstanding tenant files for eligibility requirements. Effect Tenants may not be paying the proper rent amount in accordance with their income and eligibility factors. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend there be a second party review of the file to ensure all calculations are correct and appropriate documents are included. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement the auditor’s recommendation.
Finding 2023-004
Federal Program U.S. Department of Housing and Urban Development AL #14.850 – Significant Deficiency Federal Award Year 2023 Criteria The PHA must determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5, Subpart F (24 CFR sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259). Condition We tested compliance with the Authority’s eligibility in 40 tenant files and found that 3 TTP’s were incorrect due to the Authority calculating an incorrect rent payment. Questioned Costs None Context We reviewed a sample of 40 of the Authority’s 174 outstanding tenant files for eligibility requirements. Effect Tenants may not be paying the proper rent amount in accordance with their income and eligibility factors. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend there be a second party review of the file to ensure all calculations are correct and appropriate documents are included. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement the auditor’s recommendation.